Korean institutional crypto activity has moved beyond the MOU (Memorandum of Understanding) stage and entered concrete business operations and exchange equity acquisitions. Institutions are quietly intensifying competition to seize control of critical financial infrastructure—including STO (Security Token Offering) standard-setting, stablecoin payment rails, and custody markets.
Domestic infrastructure builders are emerging as the core pillars of institutional business, constructing Korea-native rails compliant with the Bank of Korea’s CBDC framework and local regulatory requirements—reducing reliance on foreign technology. Overseas Web3 foundations’ strategies for entering Korea have undergone a complete shift: from retail community-building to partnering with major corporations and financial institutions, as traditional finance accelerates its takeover of the market.
The chart above, compiled by Tiger Research, maps connection relationships within Korea’s institutional crypto landscape. Notably, this complexity itself accurately reflects the current state of Korea’s institutional crypto market. As confirmed by Tiger Research’s dataset—150 institutions and 196 partnership relationships—not a single hub has yet achieved dominant market control.
Domestic institutions are establishing their positions across the entire market even before regulation is fully clarified. Competition is currently unfolding along three key fronts: stablecoins, STOs (Security Token Offerings), and custody (crypto asset storage). Equally noteworthy is financial institutions’ ongoing acquisition of exchange equity—an action widely interpreted as a confidence-driven move to secure footholds ahead of full regulatory clarity.
Less than 10 days after Hana Bank announced its acquisition of a 6.55% stake in Dunamu—the operator of Upbit—for approximately ₩1 trillion (~USD 720 million)—Hanwha Investment & Securities approved an additional 3.90% acquisition. On May 28 of the same month, Samsung Securities, Samsung SDS, and Samsung Card jointly announced a collective acquisition of 4.0%. Mirae Asset Securities had already signed an agreement back in February to acquire 92.06% of Korbit; meanwhile, reports indicate that Korea Investment & Securities and global exchange OKX are in discussions regarding a joint acquisition of Coinone.
This competition reflects a fundamental revaluation of crypto exchanges: they are no longer viewed merely as trading-fee platforms, but rather as critical customer touchpoints capable of distributing stablecoins, offering custody services, issuing security tokens, and delivering RWA (Real World Asset) products. Banks and securities firms gain indirect access to licenses such as VASP (Virtual Asset Service Provider) registration, while simultaneously securing exchanges’ user bases and liquidity. The current equity battle is ultimately a race to control the financial front-end of digital assets.
A sector-by-sector analysis of the relationship map reveals an imbalanced landscape. Custody operations are the most active: many participants have already launched live services after clearing regulatory hurdles. In contrast, RWAs and STOs remain largely at the contractual or MOU stage, awaiting enactment of relevant legislation. Stablecoins face similar stagnation—no clear standard-setter has yet emerged in a position to dominate the market.
The domestic STO market is divided into two camps: the KOSCOM-led alliance and the fragmented investment alliance led by Shinhan Investment & Securities. Mirae Asset Securities has taken an independent path—leveraging overseas operations rather than waiting for domestic infrastructure to mature. KOSCOM is pursuing a neutral infrastructure model aligned with its founding mission, providing shared infrastructure for securities firms. Shinhan Investment & Securities, by contrast, has rapidly built its own end-to-end STO ecosystem—from issuance to distribution—via its PULSE platform and its controlling stake in NXT.
Mirae Asset Securities has completely bypassed domestic infrastructure development and gone global directly. It issued digital bonds in Hong Kong and plans to launch MTS (Market Tokenized Securities) for retail investors in June. In the U.S., it is the only Korean securities firm to join DTCC’s tokenization working group—participating actively in global standard-setting discussions.
Stablecoin market participants are more diverse than in other sectors. The largest bloc is the Kakao Group, deploying infrastructure built atop its Kaia public blockchain. Shinhan Card focuses on migrating its existing payment network onto blockchain rails, having completed initial proof-of-concepts with Solana, Visa, Mastercard, and Fireblocks. Exchange players such as Dunamu and Bithumb seek solutions to bypass delays in the Korean won stablecoin rollout—through partnerships with entities like Naver Financial or Circle.
In custody, KODA, KDAC, BDACS, and BitGo Korea have each established distinct market positions. Institutions entered the space via their respective custody relationships. However, reports indicate all major custody providers posted net losses last year—suggesting infrastructure build-out has outpaced the inflow of institutional capital needed to sustain operations.
Among traditional IT service firms, LG CNS holds the clearest stance. As the prime contractor for the Bank of Korea’s CBDC project “Hangang,” it is developing a government subsidy disbursement system leveraging deposit tokens. DSRV enables financial institutions to access wallet, payment, tokenization, and custody functionalities via its Portal interface—without needing to build their own nodes or security infrastructure. Altus operates at the integration layer between legacy financial systems and blockchain environments, delivering core architectural support to institutions.
Korea’s crypto market has undergone major restructuring in just six months. Custody alliances have formed, STO coalitions have crystallized, and major financial holding companies have taken decisive action to acquire exchange equity. Meanwhile, retail trading volume has dropped sharply, and market focus is shifting rapidly—from retail to institutional participants. This transformation has also reshaped how overseas crypto foundations approach Korea; future engagement is expected to pivot toward substantive commercial discussions.
[TechFlow]
Power Shift in South Korea: Institutional Finance’s Crypto Conquest
The South Korean crypto market is undergoing a tectonic shift, moving beyond retail speculation into the domain of institutional finance. This transformation represents not just a change in market participants, but a fundamental reconfiguration of the crypto ecosystem itself. As traditional financial institutions aggressively position themselves to control critical infrastructure, we’re witnessing a strategic realignment that will likely reshape the global crypto landscape.
The Institutional Land Grab
The most striking development is the institutional acquisition spree of crypto exchange equity. Within weeks, major financial players have secured significant stakes in Korea’s leading exchanges: Hana Bank acquired 6.55% of Dunamu (Upbit) for ₩1 trillion (~$720 million), Hanwha Investment & Securities secured an additional 3.90%, Samsung entities collectively acquired 4.0%, and Mirae Asset Securities took control of Korbit with a 92.06% stake. This isn’t merely diversification—it’s a calculated race to control the customer-facing infrastructure of digital assets.
What’s particularly noteworthy is how exchanges have been revalued. They’re no longer just trading platforms but critical touchpoints for distributing stablecoins, offering custody services, issuing security tokens, and delivering RWA products. By acquiring exchange equity, financial institutions gain indirect access to VASP licenses while securing valuable user bases and liquidity—a strategic positioning ahead of regulatory clarity.
Three-Front Infrastructure War
The competition is crystallizing around three strategic pillars:
Custody: The Battle for Asset Safeguards
Custody operations are the most mature sector, with several providers already offering live services after clearing regulatory hurdles. KODA, KDAC, BDACS, and BitGo Korea have established distinct market positions, though reports indicate all major custody providers posted net losses last year. This suggests infrastructure build-out has outpaced institutional capital inflows—a temporary situation likely to reverse as adoption accelerates.
STOs: Standard Wars and Strategic Alliances
The domestic STO market is divided into two main camps: KOSCOM’s neutral infrastructure alliance and Shinhan Investment & Securities’ fragmented investment alliance via its PULSE platform and NXT stake. Mirae Asset has taken an independent global path, issuing digital bonds in Hong Kong and joining DTCC’s tokenization working group in the US—a savvy move to participate in global standard-setting while domestic frameworks mature.
Stablecoins: The Payment Race
Stablecoin competition is more diverse, with Kakao Group leading through its Kaia blockchain infrastructure, Shinhan Card migrating payment networks to blockchain rails, and exchanges like Dunamu and Bithumb seeking workarounds for Korean won stablecoin delays through partnerships with Naver Financial and Circle. The absence of a clear market leader here presents an opportunity for first-movers to establish dominance.
Korea’s Unique Institutional Approach
What distinguishes Korea’s institutional crypto adoption is its focus on domestic infrastructure compliant with the Bank of Korea’s CBDC framework. This reduces reliance on foreign technology and aligns with national strategic priorities. Traditional IT service firms like LG CNS (leading the Bank of Korea’s CBDC project “Hangang”), DSRV, and Altus are playing crucial roles in bridging legacy financial systems with blockchain environments.
This domestic focus represents both an advantage and a potential limitation. On one hand, it creates a robust, regulatory-compliant ecosystem. On the other, it could lead to technological silos that limit global interoperability—a strategic consideration for investors evaluating long-term potential.
Global Implications and Investment Considerations
For investors, this shift in Korea represents several key opportunities and risks:
Opportunities:
1. Infrastructure Plays: Companies providing custody solutions, STO platforms, and stablecoin infrastructure are positioned for significant growth.
2. Tokenization Leaders: As Korea develops its STO framework, early movers in real-world asset tokenization could capture substantial market share.
3. Exchange Ecosystems: The exchanges being acquired (Upbit, Korbit, Coinone) are likely to see increased valuation and business diversification.
4. CBDC Integration: Firms involved with Korea’s CBDC project could benefit from increased institutional adoption.
Risks:
1. Regulatory Uncertainty: Despite engagement, regulatory frameworks remain incomplete, potentially disrupting current plans.
2. Over-Commodification: As traditional finance takes control, innovative use cases might be sidelined in favor of conventional financial products.
3. Market Fragmentation: The lack of a dominant player creates uncertainty about which standards will prevail.
4. Execution Risk: Many of these initiatives are in early stages with uncertain timelines and adoption rates.
Strategic Outlook
South Korea’s institutional crypto adoption represents a maturation of the market, moving beyond speculation into utility-driven applications. The intensity of competition suggests confidence in the sector’s long-term prospects, but the fragmented landscape indicates we’re still in early innings.
For investors, the key is identifying which players will successfully navigate this transition. Those who can balance regulatory compliance with innovation, and who can establish dominant positions in critical infrastructure segments, are likely to emerge as long-term winners. As Korea transforms into an institutional crypto hub, it may well set a template for other major economies to follow.
The South Korean experience demonstrates that crypto adoption isn’t just about technology—it’s about integration with existing financial systems and regulatory frameworks. The institutions that best understand this balance will shape the future of digital assets in Korea and potentially beyond.